UN labor body halts appointment of US official over unpaid dues

The International Labour Organization (ILO) has rescinded the appointment of US official Sheng Li as its deputy director, citing persistent delays in the United States' payment of its contributions. ILO Director-General Gilbert Houngbo announced the decision, stating that the revocation was due to "ongoing delays in settling payment arrears."

Sheng Li, a senior official within the US Department of Labor, had his appointment announced in April. As of June 1, the US owed the Geneva-based organization 173 million Swiss francs (approximately 150 million euros) for the past two years, plus nearly 84 million Swiss francs (around 72 million euros) for the current year. Historically, the US has been the largest contributor to the ILO's budget.

"The ILO remains in constructive dialogue with the US government on this matter," Houngbo stated. He added that the US could clear its arrears and thereby "regain its position as the largest contributor." The organization has been without a deputy head since September, when US citizen Celeste Drake departed. The deputy director position has traditionally been allocated to the United States.

Due to these funding shortfalls, the ILO is planning to cut 120 jobs by 2029. However, these reform plans still require formal adoption. The situation highlights the financial pressures on international organizations when member states fail to meet their financial obligations.